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The Basics of Supply quiz

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  • What side of the market does supply concern?
    Supply concerns the producer or seller side of the market.
  • What is quantity supplied (QS)?
    Quantity supplied is the amount of a good or service that sellers are willing to produce at a specific price.
  • How does the law of supply describe the relationship between price and quantity supplied?
    The law of supply states that as the price of a good increases, the quantity supplied also increases.
  • What happens to quantity supplied when the price decreases?
    When the price decreases, the quantity supplied also decreases.
  • How is supply represented graphically?
    Supply is represented graphically by a supply curve on a price-quantity graph.
  • What is the slope direction of the supply curve?
    The supply curve slopes upward, indicating a direct relationship between price and quantity supplied.
  • How does the slope of the supply curve compare to the demand curve?
    The supply curve slopes upward, while the demand curve slopes downward.
  • What is a supply schedule?
    A supply schedule lists different prices and the corresponding quantities supplied.
  • What does the abbreviation 'S' stand for in supply?
    'S' stands for supply, representing the seller side of the market.
  • What does 'QS' stand for in supply analysis?
    'QS' stands for quantity supplied.
  • How do sellers respond to higher prices according to the law of supply?
    Sellers are willing to produce and supply more goods when prices are higher.
  • How do sellers respond to lower prices according to the law of supply?
    Sellers are willing to produce and supply fewer goods when prices are lower.
  • What is the main difference between supply and demand in terms of market focus?
    Supply focuses on sellers, while demand focuses on consumers.
  • How are supply and demand curves color-coded in Pearson Plus?
    Supply is color-coded red, and demand is color-coded blue.
  • Why do supply and demand curves slope in opposite directions?
    Supply curves slope upward because sellers supply more at higher prices, while demand curves slope downward because consumers buy less at higher prices.